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HONOLULU -- Hawaii is saying "aloha" to a $10.10 minimum hourly wage.
Gov. Neil Abercrombie on Tuesday signed a proposal into law that will gradually increase the state's current $7.25 minimum wage to $10.10 by Jan. 1, 2018. Hawaii will first increase its minimum wage to $7.75 by Jan. 1, followed by 75-cent increases for three years.
Hawaii is the third state to raise its minimum wage to $10.10, following Connecticut and Maryland. The $10.10 figure was requested by President Obama during his State of the Union Address in January.
Also to be increased is Hawaii's tip credit, which applies to workers who often receive tips, such as bartenders, waiters, waitresses, valets and other service employees who earn more than $30 in tips per month. Currently, these employees must make at least $7 per hour in tips and wages. Under the new law, this figure will be raised by 50 cents in 2015 and another 75 cents in 2016.